An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. The Group has the following primary operating segments, which have been identified based on the way operations and financial information are organised and financial information is reported to the Board of Management:
-
Assurance;
-
Advisory.
All operating segments’ operating results are reviewed regularly by the Board of Management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.
As the Group operates in the Netherlands, there is only one geographic segment.
The pricing of intersegment transactions is determined in accordance with the applicable internal policies.
Information about reportable segments
Information related to each reportable segment is set out below. Net sales, Income and Operational results are used to measure performance as management believes this information to be the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries. In addition, FTEs per segment are closely monitored.
Segmentation 2020/2021 | Assurance | Advisory | Total reportable segments | Other segments and intersegment eliminations | Total |
Net sales | 309,840 | 210,538 | 520,378 | - | 520,378 |
Income | 298,530 | 221,822 | 520,352 | -975 | 519,377 |
Operational result | 93,188 | 76,336 | 169,524 | -84,929 | 84,595 |
Total | |||||
Assurance | Advisory | Total reportable segments | Other segments | Total | |
FTEs | |||||
Partners | 86 | 53 | 139 | 6 | 145 |
Other professionals | 1,590 | 1,036 | 2,626 | - | 2,626 |
Support staff | 147 | 59 | 206 | 513 | 719 |
Total FTEs | 1,823 | 1,148 | 2,971 | 519 | 3,490 |
Segmentation 2019/2020 | Assurance | Advisory | Total reportable segments | Other segments and intersegment eliminations | Total |
Net sales* | 287,018 | 184,125 | 471,143 | 54 | 471,197 |
Income* | 276,264 | 195,350 | 471,614 | -911 | 470,703 |
Operational result* | 82,484 | 30,734 | 113,218 | -80,852 | 32,366 |
Assurance | Advisory | Total reportable segments | Other segments | Total | |
FTEs | |||||
Partners | 82 | 52 | 134 | 8 | 142 |
Other professionals | 1,614 | 1,166 | 2,780 | – | 2,780 |
Support staff | 116 | 52 | 168 | 511 | 679 |
Total FTEs | 1,812 | 1,270 | 3,082 | 519 | 3,601 |
*The comparative information was restated to align with current year’s presentation.
Reconciliation of information on reportable segments to the amounts reported in the financial statements
EUR 000 | 2020/2021 | 2019/2020 |
Net sales and income | ||
Net sales | 520,378 | 471,197 |
Adjustment internal revenue | -1,001 | -494 |
Income | 519,377 | 470,703 |
Client related expenses | 49,295 | 54,741 |
Consolidated revenue | 568,672 | 525,444 |
EUR 000 | 2020/2021 | 2019/2020 |
Operational result | ||
Operational result | 84,595 | 32,366 |
Extraordinary results | -2,119 | -570 |
IFRS 16 adjustments | 2,273 | 3,193 |
Fees payable to the Cooperative | 34,824 | 34,110 |
Other | – | -242 |
Consolidated Operating result | 119,573 | 68,857 |
Work performed by employees for internal purposes (adjustments internal revenue) is included in net sales for internal reporting purposes. This is excluded from Income or Consolidated revenue.
Income for internal reporting purposes is exclusive of client related expenses, such as travel expenses, expense declarations or external client related invoices. When these expenses are invoiced to the client, they are included in Consolidated revenue.
Operational result for internal reporting purposes is exclusive of extraordinary results such as the effects of IFRS 16, the advanced fees paid to the Cooperative and one-off items of income and expense, which are included in consolidated operating result.